For an unplanned medical expense, fulfilling a family vacation, or planning a big fat Indian wedding. Acquiring a personal loan is an easy way to manage your funds efficiently. Many banks offer personal loans at an affordable rate of interest. Without any collateral or security and have flexible repayment terms.
Depending on the requirement and eligibility, one can easily apply online through the bank’s website to get a personal loan in India. However, one should read the personal loan agreement carefully and be aware of the processing fee, prepayment charges, EMI amount, loan disbursement period, etc., to avoid any misconduct in the future.
Eligibility for a personal loan
- The age of the candidate should be at least 25 years while applying for the loan, and the candidate should be less than his/her retirement age at the time of loan maturity.
- Another personal loan criteria include the candidate’s income should at least be INR 20,000 per month.
- Along with age and salary, the candidate should possess a minimum of 3 years experience and should have worked at least 1 year at the current organization.
Here is a list of things to look out for to get a personal loan.
- Lender’s Credibility – Perform comprehensive research on the lenders available in the market and compare their policies to get the best offer.
- Interest rate – It is calculated based on the income of the applicant, the credit history of the applicant, and the tenure chosen by the borrower.
- Repayment Time – The repayment period could lie between 1 to 5 years, as per your convenience.
- Processing fee – Make sure the one-time processing fee is not more than 4% of the loan amount.
- Documentation – Lookout for the bank which offers an online loan applying option and quicker loan approval.
- Foreclosure Charges – Do look for the additional charges in case you want to prepay your loan amount ahead of its tenure.
- EMI amount – Calculate your monthly installments before applying for a loan to avoid rejection at a later stage.
- Read the documents – Go through the terms and conditions carefully to be aware of all costs.
Benefits of personal loan
- Credit score – Getting a personal loan is a good way to improve your credit history by paying off your EMI on time.
- Easy tracking – One can usually track their loan application status online through the bank’s website. Most banks also offer customer support services to resolve queries.
- Consolidating debt – If a person has many credit cards. A personal loan can be a great way to get rid of other debts.
- They can take a loan to pay off the debt and repay only one loan.
Applying for a personal loan
To get personal loan instant approval, candidates can apply online through the bank’s website.
The candidate is required to fill in all the details in the online form. Such as name, date of birth, gender, mode of income and repayment, email ID, and mobile number.
In the next step: the bank provides a loan. Quote for which the candidate is eligible based on his/her income, age, credit score, and the repayment period.
Once the form is submitted successfully, the bank contacts the customer to complete the KYC formalities and verification process. Once it is done, funds are transferred to your account.